Services Design Techniques: Derbyshire Business School Services Blueprint Polina Baranova Derbyshire Business School

Services Definitions ‘Any activity or benefit that one party can offer to another, which is essentially intangible and does not result in the ownership of anything’ Philip Kotler 2004 ‘Services can be bought and sold, but cannot be dropped on your foot’(!) Gummesson 1987

Services are largely intangible have benefits are perishable (time and place dependent) cannot be stored or transported are inseparable from the service provider are often inconsistent or variable in quality especially personal services eg hairdressing cannot be owned

What is a 'Process'? 'If you can’t describe what you are doing as a process, you don’t know what you’re doing.' W E Deming '… a series of actions or steps taken in order to achieve a particular end.' The New OXFORD Dictionary of ENGLISH (1998)

Volume (Number of customers processed per day) Process Types in Services, Silvestro et al 1992 High People Contact time Customisation Discretion Front Office Orientated Volume (Number of customers processed per day) Professional Service Shops Mass Low High Medium People/Equipment Contact time Customisation Discretion Front Office/Back Office Orientated Variety Equipment Contact time Customisation Discretion Back Office Orientated Low

Definition of a service ‘process’ ‘The actual procedures, mechanisms, and flow of activities by which the service is delivered – the service delivery and operating systems’ (Zeithaml, Bitner & Gremler, 2006)

Process mapping: Flow Charting Actually map what tasks are happening to determine the flow of the process Operation, Task or activity Movement – people, materials, information Inspection Delay or pause in the process Storage

Flow Chart Receptionist fills out work order x Work order placed in ‘waiting job’ box x Job picked up by Operator and read x Job taken to copying machine x Operator waits for his turn on machine x Operator loads paper x Operator sets machine x Operator performs the copying x Operator inspects the copying x Job taken to Cashier x Job waits its turn for processing x Cashier raises Invoice x Cashier takes payment x Cashier packages the job x Flow Chart

Customer sales representative GLUING, BINDING, STAPLING, LABELING Process Flow Diagram Source: Heizer J., Render B., (2006) Operations Management, 8th edition, p257 Customer Customer sales representative Purchasing Vendors PREPRESS DEPT Accounting Receiving PRINTING DEPT Warehouse COLLATING DEPT GLUING, BINDING, STAPLING, LABELING Information flow Material flow POLYWRAP DEPT SHIPPING

Blueprinting Design of the services More sophisticated version of flowcharting: Flowcharting – existing processes; Blueprinting – grater detail of service design from the customer point of view: Main Stages in customer journey through the service process; Definition of standards for each front-stage activity; Physical and other evidence of front-stage activity; Principal front-stage participants; Line of visibility; Back-stage actions; Support processes involving other service personnel; Support services involving information technology.

Blueprinting Principle functions Timing and sequencing A visual representation of a service process showing: Principle functions Timing and sequencing Participants involved “Line of visibility” Tolerance levels Feedback loops

Developing a Blueprint Identify key activities in creating and delivering service Define “big picture” before “drilling down” to obtain a higher level of detail Distinguish between “front stage” and “back stage” Clarify interactions between customers and staff, and support by backstage activities and systems Identify potential fail points; take preventive measures; prepare contingency Develop standards for execution of each activity— times for task completion, maximum wait times, and scripts to guide interactions between employees and customers

Advantages of Blueprinting Blueprint differentiates between what customers experience “front stage and the activities of employees and support process “backstage”; Blueprint shows how customers and employees interact; Blueprint highlights possible fail points in the process; It highlights the areas of excessive wait; More in-depth analysis of service encounter – crucial stage of service process redesign.

Identifying Fail Points High risk areas in service delivery where things could go wrong; Errors include: Treatment errors—human failures during contact with customer e.g. lack of courteous or professional behavior, failure to acknowledge, listen to, or react appropriately to the customer Areas of excessive wait – could annoy customers and lead to negative customer experience Tangible errors—failures in physical elements of service e.g. noise pollution, improper standards for cleaning of facilities and uniforms, equipment breakdown Aim of fail-safe procedures is to prevent errors Areas of wait – reducing an opportunity for excessive wait F F W